Section 22-101 – “Bond” Defined

    In this subtitle, “bond” means a bond, note, certificate of indebtedness, security, or other instrument evidencing debt issued and sold or offered for sale in accordance with law.

Section 22-102 – Sanitary District Bonds

    (a)    The Commission may issue bonds of the sanitary district in amounts necessary to carry on its work, including for:         (1)    acquisition, design, construction, reconstruction, establishment, extension, enlargement, or condemnation of the water and sewer systems in the sanitary district or in an area where extension of the systems may be authorized by law;         (2)    acquisition of land […]

Section 22-103 – Bonds — Maximum Amount Issued

    (a)    Except as provided in subsection (b) of this section, the aggregate principal amount of bonds outstanding at any time that will not reach full maturity within 5 years from the date of issue may not exceed the greater of:         (1)    the sum of:             (i)    3.8% of the total assessable base of all real property assessed for county […]

Section 22-104 – Guarantee

    (a)    (1)    The bonds shall be:             (i)    issued under the hand and seal of the Commission; and             (ii)    guaranteed as to payment of principal and interest by Montgomery County and Prince George’s County.         (2)    Each bond shall contain the following statement: “The payment of interest when due and the principal at maturity is guaranteed by Montgomery and Prince George’s counties, […]

Section 22-105 – Destroyed, Lost, or Mutilated Bonds

    (a)    (1)    If a bond issued by the Commission is destroyed, lost, or mutilated, the Commission may execute and deliver to the holder or registered owner of the bond a new bond with the same date, number, maturity, and tenor:             (i)    on conditions to evidence ownership and the destruction or loss of the bond that the Commission determines; […]

Section 22-106 – Repayment of Bonds

    (a)    (1)    To retire and pay the interest on bonds issued under this subtitle, each year the county councils of Montgomery County and Prince George’s County shall impose against the assessable property that is in the sanitary district a tax sufficient to pay the principal of and interest on the bonds, as and when due and until […]

Section 22-107 – Current Bond Fund

    (a)    (1)    The amount collected by the Commission for benefits imposed against property for water supply and sewer construction under Title 25, Subtitle 2 of this article shall be set aside in a separate fund known as the Current Bond Fund.         (2)    (i)    The Current Bond Fund shall be used to pay interest on all outstanding bonds.             (ii)    The balance […]

Section 22-108 – Distribution of Funds

    (a)    (1)    From the money received from the taxes imposed under § 22–106 of this subtitle together with the amount in hand to the credit of the Current Bond Fund or the amount applicable to the payment of interest and principal on the bonds, the Commission shall:             (i)    pay all interest on the bonds as and when due; […]

Section 22-109 – Performance of Acts Required

    To ensure the prompt payment of interest and provision for the payment of the principal on bonds issued under this subtitle:         (1)    the prompt and proper performance of the acts required under §§ 22–106 and 22–108 of this subtitle is specially enjoined; and         (2)    a person who is required to act under §§ 22–106 and 22–108 of […]

Section 22-110 – Anticipation Loans

    (a)    (1)    Subject to paragraph (2) of this subsection, the Commission may borrow money in anticipation of taxes, sale of bonds, or other revenue of the fiscal year in which the loan is made or the next succeeding fiscal year to:             (i)    pay the principal and interest of bonds due or to become due within 4 months;             (ii)    pay […]

Section 22-111 – Water Service Charge

    Each year the Commission shall:         (1)    determine the amount necessary to pay the principal and interest requirements of the bonds; and         (2)    set the water service charge of the sanitary district at a rate sufficient to pay:             (i)    the cost of the service; and             (ii)    the requirements of bonds, issued and outstanding, that are to be paid out of […]

Section 22-112 – Bond Payment

    The amount of water service charges and sewer usage charges collected each year for the payment of principal and interest due on outstanding bonds shall be deducted from the amount that the Commission has determined is necessary to be raised by an ad valorem tax on certification to the county councils of Montgomery County and […]

Section 22-113 – Negotiable Bond Anticipation Notes

    (a)    (1)    Subject to written approval of the county executives and county councils of Montgomery County and Prince George’s County, the Commission, on behalf of the sanitary district, may:             (i)    borrow money for any purpose for which bonds of the Commission are to be issued; and             (ii)    issue negotiable bond anticipation notes of the Commission for any money borrowed […]

Section 22-114 – Refunding Bonds — Authority to Issue

    (a)    The Commission may borrow money and issue refunding bonds to refund bonds issued and outstanding by the Commission if:         (1)    the county executives and county councils of Montgomery County and Prince George’s County approve the plan for the issuance of refunding bonds; and         (2)    the Commission determines that issuing refunding bonds will result in total savings in […]

Section 22-115 – Refunding Bonds — Repayment

    (a)    The Commission may determine the amount of proceeds from the refunding bonds to deposit in a trust fund established in the name of the Commission with a trust company or other banking institution as trustee.     (b)    (1)    Money in the trust fund may be invested and reinvested in direct obligations of, or obligations the principal of which […]